Saving remaining constant, the average propensity to save declines with an increase in disposable income.

Name: Saving remaining constant, the average propensity to save declines with an increase in disposable income.
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Quizplus · Accepted Answer

The average propensity to save (APS) is the ratio of saving to disposable income. As disposable income increases, people tend to consume more, which reduces their APS. Therefore, as income increases, the APS declines, assuming all other factors remain constant.

Saving Remaining Constant, the Average Propensity to Save Declines with an Increase